Cyfrowy Polsat S.A. (WSE:CPS) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Cyfrowy Polsat S.A. (WSE:CPS) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to zł17.07 in the week after its latest first-quarter results. It was a credible result overall, with revenues of zł3.2b and statutory earnings per share of zł1.62 both in line with analyst estimates, showing that Cyfrowy Polsat is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Cyfrowy Polsat

Taking into account the latest results, Cyfrowy Polsat's five analysts currently expect revenues in 2023 to be zł13.4b, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of zł13.1b and earnings per share (EPS) of zł1.58 in 2023. The thing that stands out most is that, while there's been a slight bump in revenue estimates, the consensus no longer provides an EPS estimate, suggesting that revenue is more important following the latest results.

There's been no real change to the consensus price target of zł22.18, with Cyfrowy Polsat seemingly executing in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Cyfrowy Polsat, with the most bullish analyst valuing it at zł35.00 and the most bearish at zł17.80 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Cyfrowy Polsat's revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2023 being well below the historical 5.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that Cyfrowy Polsat is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts upgraded their revenue estimates for next year. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

At least one of Cyfrowy Polsat's five analysts has provided estimates out to 2025, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Cyfrowy Polsat (1 is a bit unpleasant!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.